Fund Update - January 2024
Highlighted updates from December-January
December Performance:
As of December 24th, 2023:
December Returns (%): 14.72%
December Returns ($): $4,614,975.48
Total Fund Balance: $35,977,974.88
Total Distributed to Users: $7,298,658.91
Total Funds Generated: $25,347,985.56
Platform Fee's Generated: $1,032,122.72
Unique Users: 756
Average User Deposit: TBD
Average Monthly Return (%): 16.05%
Months Active: 19
Partnership Announcement with Coincover
We're excited to provide you with one of this month's update for the Gray Fund. Our latest advancements are designed to enhance security, protection and trust within our platform.
Partnership with Coincover: Enhanced Security for Our Customers
We have established a strategic partnership with Coincover, offering an extra layer of security for our customers. This partnership is particularly crucial in cases where customers lose access to all their key shares. Utilizing Coincover's services in combination with self-storage options ensures our customers can maintain business continuity, even amidst market disruptions. Learn more about Coincover and their services at Coincover.com.
Coincover: Blockchain Insurance and Protection Company
Our vision is to foster a safe environment for crypto and blockchain companies, aiming to attract the next billion users. We are committed to ensuring that our users feel confident that their assets are secure from loss or theft, creating a foundation for innovators to develop exciting new products.
Outline of Insurance Coverage Details from the Contract
The insurance protection extends to both the Gray Fund balance and individual user accounts and wallets. Each wallet registered with the Gray Fund is protected with a soft insurance limit of $100k USD per transaction, and a high limit of $500k USD per transaction. This is in addition to the overall fund coverage. Total fund coverage can be amended in the agreement as the Gray Fund grows.
The covered risks include, but are not limited to:
Account Takeover: Unauthorized access to digital asset accounts and transactions to alternate wallets.
Address Poisoning: Misleading transactions due to closely matched wallet addresses.
Biometric Security Failure: Loss of funds due to biometric authentication breaches.
Brute Force Attack: Unauthorized access through repeated trial-and-error.
Damaged/Stolen Device: Loss of access to crypto assets due to hardware issues.
Exit Scams: Theft of deposits in cryptocurrency projects under specific conditions.
Insolvency Crypto Asset Access: Recovery of funds if the company ceases trading.
Internal Bad Actors: Misuse of credentials by permanent employees to steal assets.
Lost Seed Phrase: Loss of the sequence of words required to access crypto wallets.
Man-in-the-Middle Attacks: Compromised communication resulting in asset theft.
Multi-factor Security Failure: Losses due to compromised multi-factor authentication.
Ransomware: Inaccessibility of digital assets due to ransomware attacks.
Sim Swap: Cell phone-based two-factor authentication breaches.
Social Engineering: Deception of employees leading to asset theft.
Spear Phishing: Targeted email attacks leading to unauthorized access.
Supply Chain Hacks: Exploitation of third-party software to steal digital assets.
Whaling: High-level impersonation attacks leading to asset theft.
For a more detailed overview of the protections now being offered to our users, please see the Coincover update in our Gray Market Partnerships section. For more information on Coincover, please visit their website.
We believe these updates significantly enhance the security and reliability of our platform, reinforcing our commitment to providing a safe and innovative environment for our users and investors.
Partership Announcement with Fireblocks
Our new insurance partner Coincover requires us to use one of their approved custodians. As such, we’re pleased to share with everyone that we’re partnered with Fireblocks as a custodian.
Fireblocks is a leading digital asset custody, settlement, and issuance platform, serving over 1,800 organizations globally. It ensures secure management of digital assets for various financial institutions, including exchanges, custodians, and banks. The platform combines advanced technologies to offer services like Treasury Management, Wallets-as-a-Service, and Tokenization. Notably, Fireblocks has secured over $4 trillion in transactions, demonstrating its reliability in the digital asset space.
Gray Fund's strategic partnership with Fireblocks marks a significant step in enhancing its digital asset management services. This collaboration is particularly noteworthy due to two primary reasons: the increasing demand for smart contract related integration, and the requirement set by Coincover, Gray Fund's new insurance partner, to use one of their approved custodians.
Key Services Offered by Fireblocks
Secure Asset Transfer and Storage: Fireblocks offers an end-to-end secure environment for digital asset transactions and storage. This is crucial for managing the risks associated with digital asset transfers.
API Integration: The platform allows direct API integration with various external services. This integration is critical for Gray Fund, as it enables seamless connection with the insurance provider, security team, chainalysis, and compliance departments. Such connectivity ensures the highest level of security for user funds.
Compliance and Security: Fireblocks is highly compliant with industry standards, providing top-notch security features. This includes advanced measures to protect against unauthorized access and cyber threats, ensuring the safety of digital assets.
Transaction Volume and Experience: Fireblocks has secured over $4 trillion in transactions, a testament to its reliability and efficiency. This experience is invaluable, especially when dealing with high-volume transactions.
Versatility in Services: The platform is utilized by some of the largest cryptocurrency and national banks. Its services encompass everything from secure transactions and wallet management to comprehensive security of assets.
Application on the Gray Fund’s Operations
Enhanced Security: Leveraging Fireblocks’ robust security infrastructure, Gray Fund can offer its users an elevated level of asset protection.
Seamless Integration: The API connectivity with insurance, security, and compliance entities will streamline operations, ensuring that all aspects of asset management are cohesive and secure.
Smart Contract Integration: With the increasing emphasis on smart contracts in the cryptocurrency space, Fireblocks’ capabilities will enable Gray Fund to stay at the forefront of this technological evolution.
Insurance Compliance: Meeting the requirements set by Coincover, Fireblocks’ custodial services will align with the insurance mandates, ensuring comprehensive protection for user assets.
This transition to Fireblocks aligns with The Gray Market’s commitment to providing secure, efficient, and compliant digital asset management services to its users.
For more detailed information, visit Fireblocks website.
Website and User Interface Upgrades for Gray Market
A new, and well-needed improvement to the Gray Fund’s asset allocation section is now available via an interactive chart.
For context: the Gray Fund's asset allocation strategy is diversified and risk-aware, involving 60% in Credit & Debt assets, such as corporate and high-yield bonds, and 15% in Leveraged Puts/Calls across tech, healthcare, and other sectors. Additionally, 25% is allocated to Derivatives, including options, futures, and swaps, focusing on strategic hedging and speculative opportunities. This mix aims to balance steady income with potential high returns, underpinned by rigorous research and risk management. It is important to note that this allocation spread is not updated in real time—rather monthly, and can be adjusted based on current market conditions in real time.
All of our new strategic partners, and vendor based partners are now listed on the Gray Market homepage including: Coincover, Fireblocks, and Crypto Lids.
Crypto Lids is a platform we’ve engaged to offer Gray Market apparel. This has been a semi-frequent request from a lot of our users. With the integration being quite easy— the platform is expected to start sale of Gray Market apparel on December 31st. Our new partners Coincaover and Fireblocks have also been added to the website. Additionally, we're currently engaged with RocketDollar to potentially offer direct IRA services to our users, among others.
Gray Fund User Reports
A heavily requested feature from most of our users over the past couple of months have been for Gray Fund user reports. I’m pleased to let everyone know that this feature is now fully available to everyone who has an active Gray Fund account. There is an example report attached to this message, along with where you can find it. The Gray Fund user reports offer a detailed summary of the Gray Fund performance data, along with your individual user data (YTD based). All of your Gray Fund related transactions will appear within the report in an accountant friendly format.
A brief update on the audit with Moore & anticipated release
Our audit with Moore for the Gray Fund is still currently underway. We are anticipating it to be ready the first week of January, with a finalized release by both them, and the Gray Market by mid-January. I would like to further reiterate that the audit is complex, and requires Moore to verify each users balance, and cross reference it with deposit data, and withdrawal data— from which they take their totals and compare them to the large brokerage account holdings. This process includes analyzing nearly 400 Gray Fund user wallets via our API to ensure complete accuracy. The next update will be the full release of the audit.
Roadmap Updates
Our roadmap on the homepage of the website has been updated to reflect, currently and estimated release dates of new products, and large Gray Market related events, and thresholds—including:
Trading Services Launch: Anticipated end of January, early February 2024
Full Legal Compliance & Structure: February 2024
New Investment Product: Anticipated end of February, early March 2024
Banking Services - Beta Launch: March 2024
Staking Services Launch: March 2024
Banking Services - Full Launch: April 2024
Targeted Equity Raise: April 2024
Targeted Capital Raise (VC): May 2024
New Team Members / Hires
The Gray Market team has been expanding over the past two months with the addition of two new front end developers, one new design lead, an operations project manager (whom has experience with some of the largest companies in fintech space), an R&D fintech engineer with a broad range of experience, and a staff accountant (who is being prepped to offer accounting and tax related services to both our users and the company as a CFO). A formal introduction to these new additions to the Gray Market team will take place in early January.
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